Guernsey has announced the signing of Tax Information Exchange Agreements with Canada and Romania, taking the territory’s total number of such agreements to 21.
The agreement with Canada was signed on January 19, 2011 by Lyndon Trott, who noted that the agreement is of large significance for Guernsey:
“In view of the historical connections between Guernsey and Canada, I was delighted to welcome James Wright, the High Commissioner for Canada, to Guernsey, to sign the Agreement. While in the Island, Wright took the opportunity to meet with industry representatives with business connections in Canada.”
“The signing of this TIEA, and the ongoing negotiations that Guernsey has with many other countries, clearly demonstrates the continued commitment to the OECD’s principles of effective exchange of information, originally made in 2002. Guernsey remains in the premier league of tax transparency, an extremely important factor in a competitive global economy.”
In return, Wright said: "The Channel Islands are really important for Canadian business and Canadian companies are very important to Guernsey because of the employment and revenues they generate for the Island. We believe this Tax Information Exchange Agreement will help our businesses based here grow, which will in turn benefit the local economy. Both Guernsey and Canada are committed to meeting the highest international standards of financial regulation and the agreement we signed today is proof of that."
Under the terms of a TIEA, Guernsey will, on request, exchange bank and other information relating to both criminal and civil tax matters.
The signature of the agreement also incorporated provisions to enhance the terms placed on those engaging in bilateral economic activity. The Guernsey government disclosed that a tax exemption is to be made available in Canada for dividends received in Canada out of active business income earned by foreign affiliates applying to foreign affiliates of Canadian companies resident in Guernsey. It will also prevent the income of foreign affiliates resident in Guernsey becoming liable to tax in Canada as they are earned.
The agreement with Canada was signed on January 19, 2011 by Lyndon Trott, who noted that the agreement is of large significance for Guernsey:
“In view of the historical connections between Guernsey and Canada, I was delighted to welcome James Wright, the High Commissioner for Canada, to Guernsey, to sign the Agreement. While in the Island, Wright took the opportunity to meet with industry representatives with business connections in Canada.”
“The signing of this TIEA, and the ongoing negotiations that Guernsey has with many other countries, clearly demonstrates the continued commitment to the OECD’s principles of effective exchange of information, originally made in 2002. Guernsey remains in the premier league of tax transparency, an extremely important factor in a competitive global economy.”
In return, Wright said: "The Channel Islands are really important for Canadian business and Canadian companies are very important to Guernsey because of the employment and revenues they generate for the Island. We believe this Tax Information Exchange Agreement will help our businesses based here grow, which will in turn benefit the local economy. Both Guernsey and Canada are committed to meeting the highest international standards of financial regulation and the agreement we signed today is proof of that."
Under the terms of a TIEA, Guernsey will, on request, exchange bank and other information relating to both criminal and civil tax matters.
The signature of the agreement also incorporated provisions to enhance the terms placed on those engaging in bilateral economic activity. The Guernsey government disclosed that a tax exemption is to be made available in Canada for dividends received in Canada out of active business income earned by foreign affiliates applying to foreign affiliates of Canadian companies resident in Guernsey. It will also prevent the income of foreign affiliates resident in Guernsey becoming liable to tax in Canada as they are earned.
